On the year, the change was 4%, according to a report
from the bureau. For the nonfarm business sector, the
fourth quarter figure was much lower – 0.8% – but the
annual change was actually higher, at 4.1%.

In the manufacturing sector, the fourth quarter increase
in productivity was 5.6%, with durable goods manufacturing
productivity up 7.3% and nondurable goods up 3.7%. On the
year, the changes to these three were 4.9%, 6.1% and 3.9%,
respectively.

Hourly compensation in the business sector grew by 4.2%
in the fourth quarter, which followed a 3.8% increase in
the third quarter. The real hourly compensation change,
which takes into account alteration in consumer prices, was
up 0.8% on the quarter. Compensation for the nonfarm
business sector rose 3.1% in the fourth quarter, while
adjusted wages were up 0.3%. In manufacturing, average
hourly wages were up 6%. Adjusted, the increase was still
2.5%.

Unit labor costs for the business sector were up 1.7% in
the fourth quarter, 2.3% for the nonfarm business sector
and 0.4% for manufacturing. Unit labor costs relate hourly
compensation to output.